Candlestick Patterns f Doji Inverted Hammer Hanging Man Spinning Top 1 T tl Bearish Engulfing | Bullish Engulting Dark Cloud Piercing Lines | | T Evening Star " Bearish Harami ah Morning Star Ie Bullish Harami Three Black Crows df Al Belt Hold Three White Soldiers fa Ladder Bottom Trade Chart Patterns Like The Pros21 Trading Three Bar Groups H[3] > H[2] cl2] « c[1] L[1] > [2] H[1] > H[2] 3 Trade above H[3] Lance [1] > C[2] L[1] « L[2] Trade above H[2] H[3] > H[2] cl2} « cf1] L[2] < L[3] 3 | Off] « c[2] HI3] > H[2] c[2] < c[3] oft] > c[2] 1 H[1] > H[3] 3 Trade above H[1] H[3] > H[2] H[2] > H[1] + UB] < L[2] U2] < Lf1] Trade above H[3] 3 or Trade below L[3] VL Trade Chart Patterns Like The Pros29 Trading n-Bar Rallies/Declines (@ER2 - 610 Tick Bars 1 = 823.80 -030 Shofo7 eg To ag | bs 827.00 fll 24.00 23.00 Stop _ source: Traestatio 11036 12a2 6 feos taze AN Trading n-Bar Declines The example above illustrates an n-Bar Decline pattern from the Russell 2000 Emini chart. On May 10, 2007, ER2 sold off in the pre-afternoon session and started to make new lows around 12pm. Six new lows bars were traded before a reversal bar triggered a trad above the previous bar's high. This scenario presented a trade long in the downtrend. 1. Enter a “long” trade one tick above the previous bar's high at 822.7. 2. Place a “stop” order below the low of the n-Bar decline at 821.6. 3. Target between 62% and 100% of the n-Bar decline range from 824.8 to 826. Trade Chart Patterns Like The Pros30 Trading n-Bar Rallies/Declines CVX - Weekly L=78.19 -1.56 ‘§/10]07 6:06PM js 46.00%, $8.12) 62.00 Sousce: TradeStation v5 ‘AprOs als OO ir Ralh The example above illustrates an n-Bar Rally setup from the Chevron weekly chart. From January to March of 2005, Chevron's stock rose from $52 to $63. Chevron made a series of higher-high prices to complete n-Bar High pattern. At the beginning of April, 2005, Chevron stopped making new highs and presented a potential short setup. 1. Enter a “short” trade below the low of the last higher-high bar at $59.70. 2. Place a “stop” order above the high of the last n-Bar setup at $63.25. 3. Place the target from 62% to 100% of range of the n-Bar setup from $55 to $53, Trade Chart Patterns Like The Pros37 Trading WR7OD Pattern (@ERZD - 30min L=794.00 +5.20 WR7OD las — > 6 g 8 | th a if My fh a ih i ss 1000 330 WAT B30 "vw 1930 ‘W19 T9:30 "Vaz 1380 123 Trading WR7OD Pattern The example above illustrates a WR7OD pattern from the Russell Emini (ER2) 30 minute chart, Please note the Wide Range bar inset, Wide Range bars are only traded in the breakout direction of the trends. A 7-day Wide Range bar signals trend shift. Long trades are initiated high above the Wide Range bar. In the example above, bars A, B and C are in down-trend and trades are only taken from downside. Bar D is formed in uptrend and trade is only taken in the upside direction. 1. Enter a “long” trade one-tick above the high of the WR7OD bar. 2. Place a “stop” order one-tick below the low of the WR7OD bar. 3. Place targets from 50% to 100% of the WR7OD range from the breakout level, Trade Chart Patterns Like The Pros